Question: Problem 2: (70 points: a to c) Garfield Financial invests primarily in energy stocks. The price of the fund at the end of each month

Problem 2: (70 points: a to c) Garfield Financial

Problem 2: (70 points: a to c) Garfield Financial invests primarily in energy stocks. The price of the fund at the end of each month for the 12 months of 2019 and the first two months of 2020 is shown in Table below. Use Excel and answer the following questions: a) Find the forecast value of the mutual fund for each month by using a nave model. The value for December 2018 was 20. b) Use a two-month moving average to forecast the mutual fund price for March 2020. c) Use a four-month moving average to forecast the mutual fund price for March 2020. d) Use a five-month weighted moving average to forecast the mutual fund price for March 2020. e) Use a six-month weighted moving average to forecast the mutual fund price for March 2020. f) Use exponential smoothing with a smoothing constant of 0.2 and an initial forecast value of 20 for January 2019 to forecast the price for March 2020. g) Use exponential smoothing with a smoothing constant of 0.1 and an initial forecast value of 20 for January 2019 to forecast the price for March 2020. h) Based on a-g what is your forecast for the mutual fund price for March 2020? Explain. Mutual Fund Price 21 22 20 19 24 21 Month Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 18 22 20 20 17 23 21 18

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